Car finance worries

Ok what you need to do really is draw up all the facts you have.

What is the balance on the finance agreement? Phone them up and ask for a settlement figure, it won't be the same as the total balance remaining. Don't tell them why you are asking for it.

What is the car worth (what are other examples as close to that one as you can find worth on auto trader)?

Before you do this you don't even know if you'll need gap cover. IF you do then..


Read through your GAP policy, I doubt it matters whether you can drive the car or not, at the end of the day it's a policy based on an asset that you will be claiming against whilst the car was validly insured (you really need to check the wording but I would be surprised if you weren't covered even given the example above the only reason they need to ensure the car is unsured before paying out is so that your gap policy isn't expected to cover the full value of the vehicle plus shortfall).


With regards to the finance agreement, the dealership have done nothing wrong in placing it in your name or by selling you a gap copy, you are just a guarantor of repayment for the finance and tbh it is up to you to read the t's&c's of the gap cover. The real mistake was letting your ex keep the car but there's no point dwelling on that now.
 
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If it was all registered when they lived together then it's extremely unlikely to be an issue - plus it's not exactly something they are going to bring up to the insurance co now!
 
If she stops paying you may have a small claims court case on the basis that the regular payments from her shows that there was an agreement for her to pay for the car.

I've watched a lot of Judge Judy.
 
Was the insurance " free" with the car. If so then whose name is it in? If it is in your name then us she the main driver or an additional driver? Do they know she no longer lives with you?
 
If she stops paying for the car he will have zero comeback and small claims will go nowhere as the finance agreement is in his name and his name only.

Not that its likely to be an issue now
 
There shouldn't be an issue with trying to get insurance pay-out money from her to pay the finance, the insurance company will pay the finance company before any remainder (should there be any) is passed to you.
 
Hades said:
Was the insurance " free" with the car. If so then whose name is it in? If your name then us she the main driver or an additional driver? Do they know she no longer lives with you?
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No the insurance was just in her name and it didn't come with the car, I'm going to ring blackhorse tomorrow and tell them to expect a cheque from the insurance company, would the insurance company not know the car is on finance and pay them?
 
There's a couple of different things going on here that are totally separate to each other..

The ex has been paying you x amount each month for the car that is "hers"
You can prove this via bank statement that she had entered a contract with you to essentially buy the car in instalments, you can take her to court for what she owes you if she stops paying.

Secondly
You and only you owe money on a finance deal, whether you have the car, drove the car or never had the car is of no relevance to the finance company. They lent you the money to be paid back with interest over a period of x months... You still owe them this money come hell or high water.

Thirdly
Insurance... lets hope they pay out and then she gives you that pay out to pay off the finance, it probably wont cover the whole cost and whether you sit down and agree with her that she pays off the rest via instalments or you have to take her to court for it, will depend on how the snake with ****... sorry, ex deals with it.

Oh and lastly, You dumb **** letting her keep the car :D
 
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Few things from the info you have supplied:

1. How old is the car? A lot of insurance companies will give "new for old" if the car is <1year old and it is Fully Comp insured. No need to involve GAP

2. If step 1 is not possible - GAP will only cover the vehicle if it has Comprehensive Insurance. If she was 3rd party insured then forget the GAP side of things.

3. If she was Fully Comp - You must inform the GAP company of the accident as well as the finance settlement figure (what you still owe)

4. Provided she is Comprehensively Insured, she must NOT accept ANY settlement from the insurance company before informing the GAP company of the settlement amount. If the settlement is accepted prior to this, the GAP company may not pay out any benefit.
 
Theyd been together 5 years though!

If the insurance and gap all pay off then youve come out a toilet smelling of roses and would have been better than selling it.

Hope shes grateful for how accomodating youve been!
 
5 years isn't exactly a long time.

maybe if they had kids together or something else tying their lives together long-term.
I lend my ex money all the time but we are legally still married and have a child together so she can't play games or cut me out of her life and forget about me and the money she owes me
 
WaynelleUK09 said:
No the insurance was just in her name and it didn't come with the car, I'm going to ring blackhorse tomorrow and tell them to expect a cheque from the insurance company, would the insurance company not know the car is on finance and pay them?
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This is going to sting. Vehicle owner needs to be declared on insurance as yourself (and typically they also need to be a named driver, at the very least).

I hope her insurers are lenient.
 
Unlikely, if you live together insurance companies generally couldn't care less if the registered owner is the other party. If it's been registered to her new address then it could potentially cause issues but even then it would be more than likely to simply be a case of deducting the higher cost of having the policy with the correct owner name on it.

Some needless scaremongering going on here
 
RedvGreen said:
This is going to sting. Vehicle owner needs to be declared on insurance as yourself (and typically they also need to be a named driver, at the very least).

I hope her insurers are lenient.
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is that true? what about a car on finiance? does the finance co need to be a named driver?
 
Matt82 said:
is that true? what about a car on finiance? does the finance co need to be a named driver?
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There are exceptions, such as an elderly relative being unable to drive (or similarly a relative out of the country, or taken ill), but good practice is that the owner is the main driver, or at least a named driver.

Each insurer has it's own criteria, but the shady area of insurers not wanting to pay out will be vast, and the excuses/justifications should be minimised on the part of the car owner.

The issue here is that the owner (i.e. the OP) may not have been involved in the insurance being placed on the vehicle at all. His ex won't think about the insurance paying off the finance, as she got free wheels - she may not see past that. Insurer and Finance Company need to liaise and agree on a settlement figure between themselves, however if the insurer wishes to be awkward, they can do so very easily. The interesting thing here, is that the ex may have bought the insurance, yet her insurance money will pay for the vehicle that the OP owes/owns. If this goes without an issue, he gets debt free, and she is down insurance and a vehicle.

You just need to hope that the insurance, when taken out, was taken out truthfully (i.e. vehicle owner: OP, not her).
 
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WaynelleUK09 said:
Finance was for i think just over 5k, i have talked to her earlier and she says she wont leave me with that debt as she already left me with 2.5k credit card debt, i only work in a shop and im panicking on what to do thats why i let her keep the car cos she was paying it.
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She won't leave you with debt?... But she already has? :confused:
hope you get it sorted mate and it doesn't go sour, a large chunk of cash can turn people into utter asses at times.
 
mikeh501 said:
You bought a car for her. She broke up with you, and you let her keep YOUR car. Your mad. :eek:
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This! Even if you didn't drive, you could have sold it and paid off the rest of the finance with what you made, or used it as encouragement to learn to drive.
 
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